<p>I was wondering if $60,000 in debt is normal after graduation? To me it sound like a lot but then again, I know next to nothing about money and I kind of have to go it alone. I plan on majoring in English and getting into publishing after I graduate. The general outlook for that is anywhere between $30,000+ and $50,000+. Would getting in that much debt be foolish or managable? Any help is much appreciated.</p>
<p>Question:
How much salary do I need to support my student loan debt of $60,000?<br>
Answer:
Based on student loan debt of $60,000.00 to be repaid over 10 years at 6.8 percent interest, my estimated monthly payment is $690.48.
To support repayment of the debt, I should earn at least:</p>
<p>$49.79 Hourly
$8,631.02 Monthly
$103,572.30 Annually</p>
<pre><code>From the website noted above you can calculate the amount of salary needed to repay different debt amounts. Most new grads cannot earn enough money to pay back more than about 15 to 20,000 in debt.
</code></pre>
<p>$60K is too much to me given your career earning expectations. However, in publishing, school can matter. So how good is the lower price school.</p>
<p>I agree that 60K is too much, but please explain to me how you would need an 8631 monthly income to play a monthly payment of 690!!!!</p>
<p>So, without the debt, you need almost 8000 to live on? That is not a helpful website.</p>
<p>It is a helpful website.</p>
<p>Those calculations are based on the financial aid industry recommendation that student loan debt not exceed 8 percent of your gross earnings.</p>
<p>At lower incomes, that might make sense. But to say that a 690 payment triggers a necessary increase of tht amount in your monthly income is meaningless.</p>
<p>You are right, Garland -- but that site is helpful to the extent that it gives a picture of anticipated monthly payment and related it to hourly/monthly/annual wage. It think it's a useful starting point. </p>
<p>My own rule of thumb is, don't borrow more in total than your expected first-year salary -- not the first year salary that you wish you can get, but the first year salary that is reasonable for a newly minted college grad to get in whatever career field the student expects to enter. </p>
<p>I think $60K of debt is far too much for an undergrad.</p>
<p>
[quote]
$60K is too much to me given your career earning expectations. However, in publishing, school can matter. So how good is the lower price school.
[/quote]
</p>
<p>Perhaps, but are there cheaper schools that would provide you a similiar education?</p>
<p>Coming from an IT background, I have to say that undergrad didn't mean a whole hill of beans for me. As long as you went to a big university, there were top companies recruting you (generally they would recruit on a regional basis). I started my job with undergrads from UT, Texas A&M, Baylor, OU, Oklahoma State, etc. The business programs of these schools ranged from top 15 to not in the top 100. The IT programs of these schools ranged from top 5 in the nation to unranked. </p>
<p>It really didn't matter though. We all got paid the same amount of money and this was pretty much the case with all of the other major employers/consulting companies in this area. Once in the real world, the degree didn't matter anymore. Perceived performance is what matters in the real world. (of course some schools give you good networking contacts such as A&M because all the gomers are brainwashed to stick together).</p>
<p>Calmom--absolutely agree.</p>